Huntington Bancshares Incorporated Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Loans and Leases and Allowance for Credit Losses

Loans and Leases and Allowance for Credit Losses

12 Months Ended

Dec. 31, 2012

Loans / Leases and Allowance for Credit Losses [Abstract]

Loans / Leases AND ALLOWANCE FOR CREDIT LOSSES

3. Loans and Leases AND ALLOWANCE FOR CREDIT LOSSES

Loans and leases for which Huntington has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are classified in the Consolidated Balance Sheets as loans and leases. Except for loans which are accounted for at fair value, loans and leases are carried at the principal amount outstanding, net of unamortized deferred loan origination fees and costs and net of unearned income. At December 31, 2012 and 2011, the aggregate amount of these net unamortized deferred loan origination fees and net unearned income was $174.5 million and $122.5 million, respectively.

Loan and Lease Portfolio Composition

The table below summarizes the Company's primary portfolios. For ACL purposes, these portfolios are further disaggregated into classes which are also summarized in the table below.

Portfolio	Class

Commercial and industrial	Owner occupied
	Purchased credit-impaired
	Other commercial and industrial

Commercial real estate	Retail properties
	Multi family
	Office
	Industrial and warehouse
	Purchased credit-impaired
	Other commercial real estate

Automobile	NA (1)

Home equity	Secured by first-lien
	Secured by junior-lien

Residential mortgage	Residential mortgage
	Purchased credit-impaired

Other consumer	Other consumer
	Purchased credit-impaired

(1) Not applicable. The automobile loan portfolio is not further segregated into classes.

Direct Financing Leases

Huntington's loan and lease portfolio includes lease financing receivables consisting of direct financing leases on equipment, which are included in C&I loans, and on automobiles. Net investments in lease financing receivables by category at December 31, 2012 and 2011 were as follows:

		At December 31,
(dollar amounts in thousands)		2012		2011

Commercial and industrial:
Lease payments receivable	$	1,477,296	$	1,001,939
Estimated residual value of leased assets		332,369		201,663
Gross investment in commercial lease financing receivables		1,809,665		1,203,602
Net deferred origination costs		2,805		3,034
Unearned income		(142,904)		(109,820)
Total net investment in commercial lease financing receivables	$	1,669,566	$	1,096,816

Consumer - Automobile:
Lease payments receivable	$	(299)	$	2,562
Estimated residual value of leased assets		921		10,843
Gross investment in consumer lease financing receivables		622		13,405
Net deferred origination fees		(2)		(18)
Unearned income		(5)		(497)
Total net investment in consumer lease financing receivables	$	615	$	12,890

The future lease rental payments due from customers on direct financing leases at December 31, 2012, totaled $1.5 billion and were as follows: $0.5 billion in 2013, $0.3 billion in 2014, $0.2 billion in 2015, $0.2 billion in 2016, $0.1 billion in 2017, and $0.2 thereafter.

Fidelity Bank acquisition

(See Note 26 for additional information regarding the Fidelity Bank acquisition).

On March 30, 2012, Huntington acquired the loans of Fidelity Bank located in Dearborn, Michigan from the FDIC. Under the agreement, loans with a fair value of $523.9 million were transferred to Huntington. These loans were recorded at fair value in accordance with applicable accounting guidance, ASC 805. The fair values for the loans were estimated using discounted cash flow analyses using interest rates currently being offered for loans with similar terms (Level 3), and reflected an estimate of probable losses and the credit risk associated with the loans.

Purchased Credit-Impaired Loans

The fair values for purchased credit-impaired loans were estimated using discounted cash flow analyses, including interest rates currently being offered for loans with similar terms (Level 3) and prepayment assumptions. This value was reduced by an estimate of probable losses and the credit risk associated with the loans.

The following table presents a rollforward of the accretable yield for the year ended December 31, 2012:


(dollar amounts in thousands)	2012
Balance at January 1,	$	---
Impact of acquisition on March 30,		27,586
Adjustments resulting from changes in purchase price allocation		3,625
Accretion		(7,960)
Balance at December 31,	$	23,251

At December 31, 2012, there was no allowance for loan losses recorded on the purchased impaired loan portfolio and no adjustment to either the accretable or nonaccretable yield was required. The following table reflects the ending and unpaid balances of all contractually required payments and carrying amounts of the acquired loans at December 31, 2012:

		December 31, 2012
(in thousands)		Ending Balance		Unpaid Balance
Commercial and industrial	$	54,472	$	80,294
Commercial real estate		126,923		226,093
Residential mortgage		2,243		4,104
Other consumer		140		245
Total	$	183,778	$	310,736

Loan Purchases and Sales

The following table summarizes significant portfolio loan purchase and sale activity for the years ended December 31, 2012, and 2011.

		Commercial		Commercial				Home		Residential		Other
		and Industrial		Real Estate		Automobile		Equity		Mortgage		Consumer		Total
(dollar amounts in thousands)

Portfolio loans purchased during the:
	Year ended December 31, 2012	$	568,467	$	378,122	$	---	$	13,025	$	62,324	$	85	$	1,022,023
	Year ended December 31, 2011		---		---		59,578		---		---		---		59,578

Portfolio loans sold or transferred to loans held for sale during the:
	Year ended December 31, 2012		238,121		74,703		2,783,748		---		389,603		---		3,486,175
	Year ended December 31, 2011		256,313		56,123		2,250,033		---		257,100		---		2,819,569

NALs and Past Due Loans

The following table presents NALs by loan class for the years ended December 31, 2012 and 2011 (1):

			December 31,
(dollar amounts in thousands)			2012		2011

Commercial and industrial:
	Owner occupied	$	53,009	$	88,415
	Other commercial and industrial		37,696		113,431
Total commercial and industrial		$	90,705	$	201,846

Commercial real estate:
	Retail properties	$	31,791	$	58,415
	Multi family		19,765		39,921
	Office		30,341		33,202
	Industrial and warehouse		6,841		30,119
	Other commercial real estate		38,390		68,232
Total commercial real estate		$	127,128	$	229,889

Automobile		$	7,823	$	---

Home equity:
	Secured by first-lien	$	27,091	$	20,012
	Secured by junior-lien		32,434		20,675
Total home equity		$	59,525	$	40,687

Residential mortgage		$	122,452	$	68,658

Other consumer		$	---	$	---
Total nonaccrual loans		$	407,633	$	541,080

(1)	December 31, 2012, amounts included $60.1 million related to Chapter 7 bankruptcy loans.

The amount of interest that would have been recorded under the original terms for total NAL loans was $40.4 million for 2012, $38.4 million for 2011, and $59.7 million for 2010. The total amount of interest recorded to interest income for these loans was $4.8 million, $5.1 million, and $5.5 million in 2012, 2011, and 2010, respectively.

The following table presents an aging analysis of loans and leases for the years ended December 31, 2012 and 2011 (1):

December 31, 2012
														90 or more
(dollar amounts in thousands)			Past Due									Total Loans		days past due
		30-59 days		60-89 days		90 or more days		Total		Current		and Leases		and accruing

Commercial and industrial:
	Owner occupied	$	11,409	$	6,302	$	31,997	$	49,708	$	4,236,211	$	4,285,919	$	---
	Purchased credit-impaired		986		3,533		26,648		31,167		23,305		54,472		26,648⁽²⁾
	Other commercial and industrial		20,273		4,211		14,786		39,270		12,591,028		12,630,298		---
Total commercial and industrial		$	32,668	$	14,046	$	73,431	$	120,145	$	16,850,544	$	16,970,689	$	26,648

Commercial real estate:
	Retail properties	$	3,459	$	4,203	$	9,677	$	17,339	$	1,413,520	$	1,430,859	$	---
	Multi family		7,961		1,314		12,062		21,337		963,063		984,400		---
	Office		1,054		2,415		23,335		26,804		909,310		936,114		---
	Industrial and warehouse		6,597		118		5,433		12,148		584,754		596,902		---
	Purchased credit-impaired		556		1,751		56,660		58,967		67,956		126,923		56,660⁽²⁾
	Other commercial real estate		2,725		2,192		25,463		30,380		1,293,662		1,324,042		---
Total commercial real estate		$	22,352	$	11,993	$	132,630	$	166,975	$	5,232,265	$	5,399,240	$	56,660

Automobile		$	36,267	$	7,803	$	4,438	$	48,508	$	4,585,312	$	4,633,820	$	4,418

Home equity:
	Secured by first-lien	$	26,288	$	9,992	$	28,322	$	64,602	$	4,315,985	$	4,380,587	$	5,202
	Secured by junior-lien		34,365		16,553		35,150		86,068		3,868,687		3,954,755		12,998
Total home equity		$	60,653	$	26,545	$	63,472	$	150,670	$	8,184,672	$	8,335,342	$	18,200

Residential mortgage
	Residential mortgage	$	118,582	$	44,747	$	164,035	$	327,364	$	4,640,065	$	4,967,429	$	92,925⁽³⁾
	Purchased credit-impaired		58		---		609		667		1,576		2,243		609⁽²⁾
Total residential mortgage		$	118,640	$	44,747	$	164,644	$	328,031	$	4,641,641	$	4,969,672	$	93,534

Other consumer
	Other consumer	$	7,431	$	2,117	$	1,672	$	11,220	$	408,302	$	419,522	$	1,672
	Purchased credit-impaired		---		76		---		76		64		140		---⁽²⁾
Total other consumer		$	7,431	$	2,193	$	1,672	$	11,296	$	408,366	$	419,662	$	1,672

Total loans and leases		$	278,011	$	107,327	$	440,287	$	825,625	$	39,902,800	$	40,728,425	$	201,132

December 31, 2011
														90 or more
(dollar amounts in thousands)			Past Due									Total Loans		days past due
		30-59 days		60-89 days		90 or more days		Total		Current		and Leases		and accruing

Commercial and industrial:
	Owner occupied	$	10,607	$	7,433	$	58,513	$	76,553	$	3,936,203	$	4,012,756	$	---
	Other commercial and industrial		32,962		7,579		60,833		101,374		10,585,241		10,686,615		---
Total commercial and industrial		$	43,569	$	15,012	$	119,346	$	177,927	$	14,521,444	$	14,699,371	$	---

Commercial real estate:
	Retail properties	$	3,090	$	823	$	33,952	$	37,865	$	1,547,618	$	1,585,483	$	---
	Multi family		5,022		1,768		28,317		35,107		908,438		943,545		---
	Office		3,134		792		30,041		33,967		990,897		1,024,864		---
	Industrial and warehouse		2,834		115		18,203		21,152		708,390		729,542		---
	Other commercial real estate		6,894		3,625		48,739		59,258		1,483,017		1,542,275		---
Total commercial real estate		$	20,974	$	7,123	$	159,252	$	187,349	$	5,638,360	$	5,825,709	$	---

Automobile		$	42,162	$	9,046	$	6,265	$	57,473	$	4,399,973	$	4,457,446	$	6,265

Home equity:
	Secured by first-lien	$	17,260	$	8,822	$	29,259	$	55,341	$	3,760,238	$	3,815,579	$	9,247
	Secured by junior-lien		32,334		18,357		31,626		82,317		4,317,517		4,399,834		10,951

Residential mortgage		$	134,228	$	45,774	$	204,648	$	384,650	$	4,843,626	$	5,228,276	$	141,901⁽⁴⁾

Other consumer		$	7,655	$	1,502	$	1,988	$	11,145	$	486,423	$	497,568	$	1,988

Total loans and leases		$	298,182	$	105,636	$	552,384	$	956,202	$	37,967,581	$	38,923,783	$	170,352

(1)	NALs are included in this aging analysis based on the loan's past due status.
(2)	All amounts represent accruing purchased credit-impaired loans related to the FDIC-assisted Fidelity Bank acquisition. Under the applicable accounting guidance (ASC-310-30), the loans were recorded at fair value upon acquisition and remain in accruing status.
(3)	Includes $90,816 thousand guaranteed by the U.S. government.
(4)	Includes $96,703 thousand guaranteed by the U.S. government.

Allowance for Credit Losses

The ACL is increased through a provision for credit losses that is charged to earnings, based on Management's quarterly evaluation, and is reduced by NCOs and the ACL associated with securitized or sold loans. There were no material changes in assumptions or estimation techniques compared with prior periods that impacted the determination of the current period's ALLL and AULC. The impact of the Chapter 7 bankruptcy loans was primarily associated with NALs and NCOs, with minimal impact to the ALLL.

The following table presents ALLL and AULC activity by portfolio segment for the years ended December 31, 2012, 2011, and 2010:

			Commercial		Commercial				Home		Residential		Other
			and Industrial		Real Estate		Automobile		Equity		Mortgage		Consumer		Total
(dollar amounts in thousands)

Year ended December 31, 2012:

	ALLL balance, beginning of period		$	275,367	$	388,706	$	38,282	$	143,873	$	87,194	$	31,406	$	964,828
		Loan charge-offs		(101,475)		(118,051)		(26,070)		(124,286)		(52,228)		(33,090)		(455,200)
		Recoveries of loans previously charged-off		37,227		39,622		16,628		7,907		4,305		7,049		112,738
		Provision for loan and lease losses		29,932		(24,908)		12,964		91,270		24,046		21,889		155,193
		Allowance for loans sold or transferred to loans held for sale		---		---		(6,825)		---		(1,659)		---		(8,484)
	ALLL balance, end of period		$	241,051	$	285,369	$	34,979	$	118,764	$	61,658	$	27,254	$	769,075

	AULC balance, beginning of period		$	39,658	$	5,852	$	---	$	2,134	$	1	$	811	$	48,456
		Provision for unfunded loan commitments and letters of credit		(5,790)		(1,112)		---		(778)		2		(127)		(7,805)
	AULC balance, end of period		$	33,868	$	4,740	$	---	$	1,356	$	3	$	684	$	40,651
	ACL balance, end of period		$	274,919	$	290,109	$	34,979	$	120,120	$	61,661	$	27,938	$	809,726

(dollar amounts in thousands)

Year ended December 31, 2011:

	ALLL balance, beginning of period		$	340,614	$	588,251	$	49,488	$	150,630	$	93,289	$	26,736	$	1,249,008
		Loan charge-offs		(134,385)		(182,759)		(33,593)		(109,427)		(65,069)		(32,520)		(557,753)
		Recoveries of loans previously charged-off		44,686		34,658		18,526		7,630		8,388		6,776		120,664
		Provision for loan and lease losses		24,452		(51,444)		17,042		95,040		52,226		30,414		167,730
		Allowance for loans sold or transferred to loans held for sale		---		---		(13,181)		---		(1,640)		---		(14,821)
	ALLL balance, end of period		$	275,367	$	388,706	$	38,282	$	143,873	$	87,194	$	31,406	$	964,828

	AULC balance, beginning of period		$	32,726	$	6,158	$	---	$	2,348	$	1	$	894	$	42,127
		Provision for unfunded loan commitments and letters of credit		6,932		(306)		---		(214)		---		(83)		6,329
	AULC balance, end of period		$	39,658	$	5,852	$	---	$	2,134	$	1	$	811	$	48,456
	ACL balance, end of period		$	315,025	$	394,558	$	38,282	$	146,007	$	87,195	$	32,217	$	1,013,284

(dollar amounts in thousands)
Year Ended December 31, 2010:

	ALLL balance, beginning of period		$	492,205	$	751,875	$	57,951	$	102,039	$	55,903	$	22,506	$	1,482,479
		Loan charge-offs		(316,771)		(303,995)		(46,308)		(140,831)⁽¹⁾		(163,427)⁽²⁾		(32,575)		(1,003,907)
		Recoveries of loans previously charged-off		61,839		28,433		19,736		1,458		10,532		7,435		129,433
		Provision for loan and lease losses		103,341		111,938		18,109		187,964		190,577		29,370		641,299
		Allowance for loans sold or transferred to loans held for sale		---		---		---		---		(296)		---		(296)
	ALLL balance, end of period		$	340,614	$	588,251	$	49,488	$	150,630	$	93,289	$	26,736	$	1,249,008
	AULC balance, beginning of period		$	34,555	$	12,194	$	---	$	1,179	$	2	$	949	$	48,879
		Provision for unfunded loan commitments and letters-of-credit		(1,829)		(6,036)		---		1,169		(1)		(55)		(6,752)
	AULC balance, end of period			32,726		6,158		---		2,348		1		894		42,127
	ACL balance, end of period		$	373,340	$	594,409	$	49,488	$	152,978	$	93,290	$	27,630	$	1,291,135

(1)	Reflects $21 million of Franklin-related charge-offs.
(2)	Reflects $71 million of Franklin-related charge-offs.

Credit Quality Indicators

To facilitate the monitoring of credit quality for C&I and CRE loans, and for purposes of determining an appropriate ACL level for these loans, Huntington utilizes the following categories of credit grades:

Pass = Higher quality loans that do not fit any of the other categories described below.

OLEM = The credit risk may be relatively minor yet represent a risk given certain specific circumstances. If the potential weaknesses are not monitored or mitigated, the loan may weaken or the collateral may be inadequate to protect Huntington's position in the future. For these reasons, Huntington considers the loans to be potential problem loans.

Substandard = Inadequately protected loans by the borrower's ability to repay, equity, and/or the collateral pledged to secure the loan. These loans have identified weaknesses that could hinder normal repayment or collection of the debt. It is likely Huntington will sustain some loss if any identified weaknesses are not mitigated.

Doubtful = Loans that have all of the weaknesses inherent in those loans classified as Substandard, with the added elements of the full collection of the loan is improbable and that the possibility of loss is high.

The categories above, which are derived from standard regulatory rating definitions, are assigned upon initial approval of the loan or lease and subsequently updated as appropriate.

Commercial loans categorized as OLEM, Substandard, or Doubtful are considered Criticized loans. Commercial loans categorized as Substandard or Doubtful are also considered Classified loans.

For all classes within all consumer loan portfolios, each loan is assigned a specific PD factor that is partially based on the borrower's most recent credit bureau score (FICO), which we update quarterly. A FICO credit bureau score is a credit score developed by Fair Isaac Corporation based on data provided by the credit bureaus. The FICO credit bureau score is widely accepted as the standard measure of consumer credit risk used by lenders, regulators, rating agencies, and consumers. The higher the FICO credit bureau score, the higher likelihood of repayment and therefore, an indicator of higher credit quality.

Huntington assesses the risk in the loan portfolio by utilizing numerous risk characteristics. The classifications described above, and also presented in the table below, represent one of those characteristics that are closely monitored in the overall credit risk management processes.

The following table presents each loan and lease class by credit quality indicator for the years ended December 31, 2012 and 2011:

		December 31, 2012
		Credit Risk Profile by UCS classification
(dollar amounts in thousands)		Pass		OLEM		Substandard		Doubtful		Total
Commercial and industrial:
	Owner occupied	$	3,970,597	$	108,731	$	205,822	$	769	$	4,285,919
	Purchased impaired		1,663		6,555		46,254		---		54,472
	Other commercial and industrial		12,146,017		145,111		337,805		1,365		12,630,298
Total commercial and industrial		$	16,118,277	$	260,397	$	589,881	$	2,134	$	16,970,689

Commercial real estate:
	Retail properties	$	1,184,987	$	63,976	$	181,896	$	---	$	1,430,859
	Multi family		902,616		24,098		57,548		138		984,400
	Office		826,533		26,488		83,093		---		936,114
	Industrial and warehouse		540,484		15,132		41,286		---		596,902
	Purchased impaired		10,052		18,085		98,786		---		126,923
	Other commercial real estate		1,177,213		43,454		103,262		113		1,324,042
Total commercial real estate		$	4,641,885	$	191,233	$	565,871	$	251	$	5,399,240

		Credit Risk Profile by FICO score (1)
		750+		650-749		<650		Other (2)		Total
Automobile		$	2,233,439	$	1,900,824	$	682,518	$	117,039	$	4,933,820⁽³⁾

Home equity:
	Secured by first-lien	$	2,618,888	$	1,345,621	$	357,019	$	59,059	$	4,380,587
	Secured by junior-lien		2,046,143		1,375,636		491,226		41,750		3,954,755
Total home equity		$	4,665,031	$	2,721,257	$	848,245	$	100,809	$	8,335,342

Residential mortgage:
	Residential mortgage	$	2,561,210	$	1,673,485	$	711,750	$	20,984	$	4,967,429
	Purchased impaired		373		1,303		567		---		2,243
Total residential mortgage		$	2,561,583	$	1,674,788	$	712,317	$	20,984	$	4,969,672

Other consumer
	Other consumer	$	169,792	$	167,389	$	59,815	$	22,526	$	419,522
	Purchased impaired		---		93		47		---		140
Total other consumer loans		$	169,792	$	167,482	$	59,862	$	22,526	$	419,662

		December 31, 2011
		Credit Risk Profile by UCS classification
(dollar amounts in thousands)		Pass		OLEM		Substandard		Doubtful		Total
Commercial and industrial:
	Owner occupied	$	3,624,103	$	101,897	$	285,561	$	1,195	$	4,012,756
	Other commercial and industrial		10,108,946		145,963		425,882		5,824		10,686,615
Total commercial and industrial		$	13,733,049	$	247,860	$	711,443	$	7,019	$	14,699,371

Commercial real estate:
	Retail properties	$	1,191,471	$	122,337	$	271,675	$	---	$	1,585,483
	Multi family		801,717		48,094		93,449		285		943,545
	Office		896,230		67,050		61,476		108		1,024,864
	Industrial and warehouse		649,165		9,688		70,621		68		729,542
	Other commercial real estate		1,112,751		110,276		318,479		769		1,542,275
Total commercial real estate		$	4,651,334	$	357,445	$	815,700	$	1,230	$	5,825,709

		Credit Risk Profile by FICO score (1)
		750+		650-749		<650		Other (2)		Total
Automobile		$	2,635,082	$	2,276,990	$	707,141	$	88,233	$	5,707,446⁽⁴⁾
Home equity:
	Secured by first-lien		2,196,566		1,287,444		329,670		1,899		3,815,579
	Secured by junior-lien		2,119,292		1,646,117		625,298		9,127		4,399,834
Residential mortgage			2,454,401		1,752,409		723,377		298,089		5,228,276
Other consumer			185,333		206,749		83,431		22,055		497,568

(1)	Reflects currently updated customer credit scores.
(2)	Reflects deferred fees and costs, loans in process, loans to legal entities, etc.
(3)	Includes $0.3 billion of loans reflected as loans held for sale related to an automobile securitization expected to be completed in 2013.
(4)	Includes $1.25 billion of loans reflected as loans held for sale related to an automobile securitization completed in 2012.

Impaired Loans

A loan is considered to be impaired when, based on current information and events, it is probable that not all amounts due according to the contractual terms of the loan agreement will be collected. The following tables present the balance of the ALLL attributable to loans by portfolio segment individually and collectively evaluated for impairment and the related loan and lease balance for the years ended December 31, 2012, 2011, and 2010 (1):

			Commercial		Commercial						Residential		Other
			and Industrial		Real Estate		Automobile		Home Equity		Mortgage		Consumer		Total

ALLL at December 31, 2012:
(dollar amounts in thousands)

	Portion of ending balance:

		Attributable to purchased credit-impaired loans	$	---	$	---	$	---	$	---	$	---	$	---	$	---
		Attributable to loans individually evaluated for impairment		11,694		31,133		1,446		4,783		14,176		213		63,445
		Attributable to loans collectively evaluated for impairment		229,357		254,236		33,533		113,981		47,482		27,041		705,630
	Total ALLL balance		$	241,051	$	285,369	$	34,979	$	118,764	$	61,658	$	27,254	$	769,075

Loans and Leases at December 31, 2012:
(dollar amounts in thousands)

	Portion of ending balance:

		Attributable to purchased credit-impaired loans	$	54,472	$	126,923	$	---	$	---	$	2,243	$	140	$	183,778
		Individually evaluated for impairment		119,535		298,891		43,607		117,532		374,526		2,657		956,748
		Collectively evaluated for impairment		16,796,682		4,973,426		4,590,213		8,217,810		4,592,903		416,865		39,587,899
	Total loans evaluated for impairment		$	16,970,689	$	5,399,240	$	4,633,820	$	8,335,342	$	4,969,672	$	419,662	$	40,728,425

	Portion of ending balance:
		With allowance assigned to the loan and lease balances	$	86,644	$	193,413	$	43,607	$	117,532	$	374,526	$	2,657	$	818,379
		With no allowance assigned to the loan and lease balances		87,363		232,401		---		---		2,243		140		322,147
	Total		$	174,007	$	425,814	$	43,607	$	117,532	$	376,769	$	2,797	$	1,140,526

	Average balance of impaired loans		$	179,692	$	474,362	$	39,139	$	79,523	$	348,727	$	4,448	$	1,125,891
	ALLL on impaired loans			11,694		31,133		1,446		4,783		14,176		213		63,445

			Commercial		Commercial						Residential		Other
			and Industrial		Real Estate		Automobile		Home Equity		Mortgage		Consumer		Total

ALLL at December 31, 2011:
(dollar amounts in thousands)

	Portion of ending balance:

		Attributable to loans individually evaluated for impairment		30,613		55,306		1,393		1,619		16,091		530		105,552
		Attributable to loans collectively evaluated for impairment		244,754		333,400		36,889		142,254		71,103		30,876		859,276
	Total ALLL balance at December 31, 2011		$	275,367	$	388,706	$	38,282	$	143,873	$	87,194	$	31,406	$	964,828

Loans and Leases at December 31, 2011:
(dollar amounts in thousands)

	Portion of ending balance:

		Individually evaluated for impairment		153,724		387,402		36,574		52,593		335,768		6,220		972,281
		Collectively evaluated for impairment		14,545,647		5,438,307		4,420,872		8,162,820		4,892,508		491,348		37,951,502
	Total loans evaluated for impairment		$	14,699,371	$	5,825,709	$	4,457,446	$	8,215,413	$	5,228,276	$	497,568	$	38,923,783

	Portion of ending balance:
		With allowance assigned to the loan and lease balances	$	153,724	$	305,390	$	36,574	$	52,593	$	335,768	$	6,220	$	890,269
		With no allowance assigned to the loan and lease balances		---		82,012		---		---		---		---		82,012
	Total		$	153,724	$	387,402	$	36,574	$	52,593	$	335,768	$	6,220	$	972,281

	Average balance of impaired loans		$	165,179	$	358,429	$	32,476	$	42,903	$	335,549	$	7,699	$	942,235
	ALLL on impaired loans			30,613		55,306		1,393		1,619		16,091		530		105,552

			Commercial and Industrial		Commercial Real Estate		Automobile		Home Equity		Residential Mortgage		Other Consumer		Total

ALLL at December 31, 2010
(dollar amounts in thousands)

	Portion of ending balance:

		Attributable to loans individually evaluated for impairment		63,307		65,130		1,477		1,498		11,780		668		143,860
		Attributable to loans collectively evaluated for impairment		277,307		523,121		48,011		149,132		81,509		26,068		1,105,148
	ALLL balance at December 31, 2010:		$	340,614	$	588,251	$	49,488	$	150,630	$	93,289	$	26,736	$	1,249,008

Loans and Leases at December 31, 2010:
(dollar amounts in thousands)

	Portion of ending balance:
		Individually evaluated for impairment		198,120		310,668		29,764		37,257		334,207		9,565		919,581
		Collectively evaluated for impairment		12,865,173		6,340,488		5,584,947		7,675,897		4,166,159		554,262		37,186,926
	Total loans evaluated for impairment		$	13,063,293	$	6,651,156	$	5,614,711	$	7,713,154	$	4,500,366	$	563,827	$	38,106,507

	Portion of ending balance:
		With allowance assigned to the loan and lease balances	$	173,243	$	241,256	$	29,764	$	37,257	$	334,207	$	9,565	$	825,292
		With no allowance assigned to the loan and lease balances		24,877		69,412		---		---		---		---		94,289
	Total		$	198,120	$	310,668	$	29,764	$	37,257	$	334,207	$	9,565	$	919,581

	Average balance of impaired loans		$	230,647	$	471,080	$	26,281	$	33,808	$	293,256	$	9,163	$	1,064,235
	ALLL on impaired loans			63,308		65,129		1,477		1,498		11,780		668		143,860

The following tables present by class the ending, unpaid principal balance, and the related ALLL, along with the average balance and interest income recognized only for loans and leases individually evaluated for impairment and purchased credit-impaired loans for the years ended December 31, 2012 and 2011 (1), (2):

									Year Ended
			December 31, 2012						December 31, 2012
					Unpaid						Interest
			Ending		Principal		Related		Average		Income
(dollar amounts in thousands)			Balance		Balance (5)		Allowance		Balance		Recognized

With no related allowance recorded:
	Commercial and industrial:
		Owner occupied	$	1,050	$	1,091	$	---	$	4,246	$	77
		Purchased credit-impaired		54,472		80,294		---		57,602		2,359
		Other commercial and industrial		31,841		54,520		---		11,922		555
	Total commercial and industrial		$	87,363	$	135,905	$	---	$	73,770	$	2,991

	Commercial real estate:
		Retail properties	$	54,216	$	56,569	$	---	$	51,939	$	2,758
		Multi family		5,719		5,862		---		5,631		353
		Office		20,051		24,843		---		6,734		405
		Industrial and warehouse		15,013		17,476		---		9,877		501
		Purchased credit-impaired		126,923		226,093		---		141,278		5,497
		Other commercial real estate		10,479		10,728		---		15,125		501
	Total commercial real estate		$	232,401	$	341,571	$	---	$	230,584	$	10,015

	Automobile		$	---	$	---	$	---	$	---	$	---

	Home equity:
		Secured by first-lien	$	---	$	---	$	---	$	---	$	---
		Secured by junior-lien		---		---		---		---		---
	Total home equity		$	---	$	---	$	---	$	---	$	---

	Residential mortgage:
		Residential mortgage	$	---	$	---	$	---	$	---	$	---
		Purchased credit-impaired		2,243		4,104		---		3,521		97
	Total residential mortgage		$	2,243	$	4,104	$	---	$	3,521	$	97

	Other consumer:
		Other consumer	$	---	$	---	$	---	$	---	$	---
		Purchased credit-impaired		140		245		---		622		6
	Total other consumer		$	140	$	245	$	---	$	622	$	6

With an allowance recorded:
	Commercial and industrial: (3)
		Owner occupied	$	46,266	$	56,925	$	5,730	$	40,029	$	1,327
		Purchased credit-impaired		---		---		---		---		---
		Other commercial and industrial		40,378		52,996		5,964		65,893		2,304
	Total commercial and industrial		$	86,644	$	109,921	$	11,694	$	105,922	$	3,631

	Commercial real estate: (4)
		Retail properties	$	65,004	$	73,000	$	8,144	$	107,842	$	4,730
		Multi family		17,410		18,531		2,662		27,953		1,371
		Office		40,375		45,164		9,214		18,751		379
		Industrial and warehouse		22,450		25,374		1,092		24,454		717
		Purchased credit-impaired		---		---		---		---		---
		Other commercial real estate		48,174		63,148		10,021		64,778		2,413
	Total commercial real estate		$	193,413	$	225,217	$	31,133	$	243,778	$	9,610

	Automobile		$	43,607	$	44,790	$	1,446	$	39,139	$	3,382

	Home equity:
		Secured by first-lien	$	76,258	$	80,831	$	1,329	$	54,898	$	2,651
		Secured by junior-lien		41,274		63,390		3,454		24,625		1,382
	Total home equity		$	117,532	$	144,221	$	4,783	$	79,523	$	4,033

	Residential mortgage: (6)
		Residential mortgage	$	374,526	$	413,583	$	14,176	$	345,206	$	11,420
		Purchased credit-impaired		---		---		---		---		---
	Total residential mortgage		$	374,526	$	413,583	$	14,176	$	345,206	$	11,420

	Other consumer:
		Other consumer	$	2,657	$	2,657	$	213	$	3,826	$	126
		Purchased credit-impaired		---		---		---		---		---
	Total other consumer		$	2,657	$	2,657	$	213	$	3,826	$	126

(dollar amounts in thousands)									Year Ended
			December 31, 2011						December 31, 2011
					Unpaid						Interest
			Ending		Principal		Related		Average		Income
			Balance		Balance (5)		Allowance		Balance		Recognized

With no related allowance recorded:
	Commercial and Industrial:
		Owner occupied	$	---	$	---	$	---	$	6,285	$	169
		Other commercial and industrial		---		---		---		5,040		162
	Total commercial and industrial		$	---	$	---	$	---	$	11,325	$	331

	Commercial real estate:
		Retail properties	$	43,970	$	45,192	$	---	$	26,717	$	1,082
		Multi family		6,292		6,435		---		13,757		701
		Office		1,191		1,261		---		1,624		9
		Industrial and warehouse		8,163		9,945		---		3,961		131
		Other commercial real estate		22,396		38,401		---		25,077		796
	Total commercial real estate		$	82,012	$	101,234	$	---	$	71,136	$	2,719

	Automobile		$	---	$	---	$	---	$	---	$	---
	Home equity loans and lines-of-credit:
		Secured by first-lien		---		---		---		---		---
		Secured by junior-lien		---		---		---		---		---
	Residential mortgage			---		---		---		---		---
	Other consumer loans			---		---		---		---		---

With an allowance recorded:
	Commercial and Industrial:
		Owner occupied	$	53,613	$	77,205	$	7,377	$	53,219	$	1,633
		Other commercial and industrial		100,111		117,469		23,236		100,635		2,952
	Total commercial and industrial		$	153,724	$	194,674	$	30,613	$	153,854	$	4,585

	Commercial real estate:
		Retail properties	$	129,396	$	161,596	$	30,363	$	102,384	$	2,897
		Multi family		38,154		45,138		4,753		28,847		829
		Office		23,568		42,287		2,832		26,589		228
		Industrial and warehouse		29,435		47,373		3,136		42,862		740
		Other commercial real estate		84,837		119,212		14,222		86,611		2,326
	Total commercial real estate		$	305,390	$	415,606	$	55,306	$	287,293	$	7,020

	Automobile		$	36,574	$	36,574	$	1,393	$	32,476	$	2,982
	Home equity loans and lines-of-credit:
		Secured by first-lien		35,842		35,842		626		26,956		1,201
		Secured by junior-lien		16,751		16,751		993		15,947		751
	Residential mortgage			335,768		361,161		16,091		335,549		12,894
	Other consumer loans			6,220		6,220		530		7,699		478

(1)	These tables do not include loans fully charged-off.
(2)	All automobile, home equity, residential mortgage, and other consumer impaired loans included in these tables are considered impaired due to their status as a TDR.
(3)	At December 31, 2012, $44,265 thousand of the $86,644 thousand commercial and industrial loans with an allowance recorded were considered impaired due to their status as a TDR.
(4)	At December 31, 2012, $31,605 thousand of the $193,413 thousand commercial real estate loans with an allowance recorded were considered impaired due to their status as a TDR.
(5)	The differences between the ending balance and unpaid principal balance amounts represent partial charge-offs.
(6)	At December 31, 2012, $28,695 thousand of the $374,526 thousand residential mortgage loans with an allowance recorded were guaranteed by the U.S. government.

TDR Loans

TDRs are modified loans where a concession was provided to a borrower experiencing financial difficulties. Loan modifications are considered TDRs when the concessions provided are not available to the borrower through either normal channels or other sources. However, not all loan modifications are TDRs.

The amount of interest that would have been recorded under the original terms for total accruing TDR loans was $41.2 million for 2012, $37.7 million for 2011, and $30.6 million for 2010. The total amount of interest recorded to interest income for these loans was $32.2 million for 2012, $28.2 million for 2011, and $23.9 million for 2010.

TDR Concession Types

The Company's standards relating to loan modifications consider, among other factors, minimum verified income requirements, cash flow analysis, and collateral valuations. Each potential loan modification is reviewed individually and the terms of the loan are modified to meet a borrower's specific circumstances at a point in time. Commercial TDRs are reviewed and approved by our SAD. The types of concessions provided to borrowers include:

Interest rate reduction: A reduction of the stated interest rate to a nonmarket rate for the remaining original life of the debt.
Amortization or maturity date change beyond what the collateral supports, including any of the following:

Lengthens the amortization period of the amortized principal beyond market terms. This concession reduces the minimum monthly payment and increases the amount of the balloon payment at the end of the term of the loan. Principal is generally not forgiven.
Reduces the amount of loan principal to be amortized. This concession also reduces the minimum monthly payment and increases the amount of the balloon payment at the end of the term of the loan. Principal is generally not forgiven.
Extends the maturity date or dates of the debt beyond what the collateral supports. This concession generally applies to loans without a balloon payment at the end of the term of the loan.

Chapter 7 bankruptcy: A bankruptcy court's discharge of a borrower's debt is considered a concession when the borrower does not reaffirm the discharged debt.

Other: A concession that is not categorized as one of the concessions described above. These concessions include, but are not limited to: principal forgiveness, collateral concessions, covenant concessions, and reduction of accrued interest. Principal forgiveness may result from any TDR modification of any concession type. However, the aggregate amount of principal forgiven as a result of loans modified as TDRs during the years ended December 31, 2012 and 2011, was not significant.

TDRs by Loan Type

Following is a description of TDRs by the different loan types:

Commercial loan TDRs – Commercial accruing TDRs often result from loans receiving a concession with terms that are not considered a market transaction to Huntington. The TDR remains in accruing status as long as the customer is less than 90-days past due on payments per the restructured loan terms and no loss is expected.

Commercial nonaccrual TDRs result from either: (1) an accruing commercial TDR being placed on nonaccrual status, or (2) a workout where an existing commercial NAL is restructured and a concession was given. At times, these workouts restructure the NAL so that two or more new notes are created. The primary note is underwritten based upon our normal underwriting standards and is sized so projected cash flows are sufficient to repay contractual principal and interest. The terms on the secondary note(s) vary by situation, and may include notes that defer principal and interest payments until after the primary note is repaid. Creating two or more notes often allows the borrower to continue a project or weather a temporary economic downturn and allows Huntington to right-size a loan based upon the current expectations for a borrower's or project's performance.

Our strategy involving TDR borrowers includes working with these borrowers to allow them to refinance elsewhere, as well as allow them time to improve their financial position and remain our customer through refinancing their notes according to market terms and conditions in the future. A refinancing or modification of a loan occurs when either the loan matures according to the terms of the TDR-modified agreement or the borrower requests a change to the loan agreements. At that time, the loan is evaluated to determine if it is creditworthy. It is subjected to the normal underwriting standards and processes for other similar credit extensions, both new and existing.

In accordance with ASC 310-20-35, the refinanced note is evaluated to determine if it is considered a new loan or a continuation of the prior loan. A new loan is considered for removal of the TDR designation, whereas a continuation of the prior note requires a continuation of the TDR designation. In order for a TDR designation to be removed, the borrower must no longer be experiencing financial difficulties and the terms of the refinanced loan must not represent a concession.

Residential Mortgage loan TDRs – Residential mortgage TDRs represent loan modifications associated with traditional first-lien mortgage loans in which a concession has been provided to the borrower. The primary concessions given to residential mortgage borrowers are amortization or maturity date changes and interest rate reductions. Residential mortgages identified as TDRs involve borrowers unable to refinance their mortgages through the Company's normal mortgage origination channels or through other independent sources. Some, but not all, of the loans may be delinquent.

Automobile, Home Equity, and Other Consumer loan TDRs – The Company may make similar interest rate, term, and principal concessions as with residential mortgage loan TDRs.

TDR Impact on Credit Quality

Huntington's ALLL is largely driven by updated risk ratings assigned to commercial loans, updated borrower credit scores on consumer loans, and borrower delinquency history in both the commercial and consumer portfolios. These updated risk ratings and credit scores consider the default history of the borrower, including payment redefaults. As such, the provision for credit losses is impacted primarily by changes in borrower payment performance rather than the TDR classification. TDRs can be classified as either accrual or nonaccrual loans. Nonaccrual TDRs are included in NALs whereas accruing TDRs are excluded from NALs as it is probable that all contractual principal and interest due under the restructured terms will be collected.

Our TDRs may include multiple concessions and the disclosure classifications are presented based on the primary concession provided to the borrower. The majority of our concessions for the C&I and CRE portfolios are the extension of the maturity date coupled with an increase in the interest rate. In these instances, the primary concession is the maturity date extension.

TDR concessions may also result in the reduction of the ALLL within the C&I and CRE portfolios. This reduction is derived from payments and the resulting application of the reserve calculation within the ALLL. The transaction reserve for non-TDR C&I and CRE loans is calculated based upon several estimated probability factors, such as PD and LGD, both of which were previously discussed above. Upon the occurrence of a TDR in our C&I and CRE portfolios, the reserve is measured based on discounted expected cash flows or collateral value, less selling costs, of the modified loan in accordance with ASC 310-10. The resulting TDR ALLL calculation often results in a lower ALLL amount because (1) the discounted expected cash flows or collateral value, less selling costs, indicate a lower estimated loss, (2) if the modification includes a rate increase, the discounting of the cash flows on the modified loan, using the pre-modification interest rate, exceeds the carrying value of the loan, or (3) payments may occur as part of the modification. The ALLL for C&I and CRE loans may increase as a result of the modification, as the discounted cash flow analysis may indicate additional reserves are required.

TDR concessions on consumer loans may increase the ALLL. The concessions made to these borrowers often include interest rate reductions, and therefore, the TDR ALLL calculation results in a greater ALLL compared with the non-TDR calculation as the reserve is measured based on the estimation of the discounted expected cash flows or collateral value, less selling costs, on the modified loan in accordance with ASC 310-10. The resulting TDR ALLL calculation often results in a higher ALLL amount because (1) the discounted expected cash flows or collateral value, less selling costs, indicate a higher estimated loss or, (2) due to the rate decrease, the discounting of the cash flows on the modified loan, using the pre-modification interest rate, indicates a reduction in the expected cash flows or collateral value, less selling costs. In certain instances, the ALLL may decrease as a result of payments made in connection with the modification.

Commercial loan TDRs – In instances where the bank substantiates that it will collect its outstanding balance in full, the note is considered for return to accrual status upon the borrower sustaining sufficient cash flows for a six-month period of time. This six-month period could extend before or after the restructure date. If a charge-off was taken as part of the restructuring, any interest or principal payments received on that note are applied to first reduce the bank's outstanding book balance and then to recoveries of charged-off principal, unpaid interest, and/or fee expenses.

Residential Mortgage, Automobile, Home Equity, and Other Consumer loan TDRs – Modified loans identified as TDRs are aggregated into pools for analysis. Cash flows and weighted average interest rates are used to calculate impairment at the pooled-loan level. Once the loans are aggregated into the pool, they continue to be classified as TDRs until contractually repaid or charged-off.

Residential mortgage loans not guaranteed by a U.S. government agency such as the FHA, VA, and the USDA, including TDR loans, are reported as accrual or nonaccrual based upon delinquency status. Nonaccrual TDRs are those that are greater than 150-days contractually past due. Loans guaranteed by U.S. government organizations continue to accrue interest upon delinquency.

The following table presents by class and by the reason for the modification the number of contracts, post-modification outstanding balance, and the financial effects of the modification for the years ended December 31, 2012 and 2011:

		New Troubled Debt Restructurings During The Year Ended⁽¹⁾
		December 31, 2012							December 31, 2011
			Post-modification
			Outstanding					Post-modification
(dollar amounts in thousands)		Number of	Ending		Financial effects		Number of	Outstanding		Financial effects
		Contracts	Balance		of modification⁽²⁾		Contracts	Balance		of modification⁽²⁾

C&I - Owner occupied:⁽³⁾

	Interest rate reduction	28	$	10,501	$	145	40	$	19,152	$	(531)
	Amortization or maturity date change	95		23,337		660	60		22,378		(1,838)
	Other	16		4,923		1,089	7		3,373		231
Total C&I - Owner occupied		139	$	38,761	$	1,894	107	$	44,903	$	(2,138)

C&I - Other commercial and industrial:⁽³⁾

	Interest rate reduction	27	$	7,436	$	(2)	28	$	22,519	$	(74)
	Amortization or maturity date change	141		76,814		(3,037)	73		27,822		(176)
	Other	32		37,202		1,265	31		56,184		(3,131)
Total C&I - Other commercial and industrial		200	$	121,452	$	(1,774)	132	$	106,525	$	(3,381)

CRE - Retail properties:⁽³⁾

	Interest rate reduction	9	$	6,883	$	957	9	$	47,473	$	4,242
	Amortization or maturity date change	15		4,472		(25)	20		31,521		6,112
	Other	3		1,680		(1)	7		15,672		1,267
Total CRE - Retail properties		27	$	13,035	$	931	36	$	94,666	$	11,621

CRE - Multi family:⁽³⁾

	Interest rate reduction	11	$	1,288	$	(27)	13	$	6,601	$	(208)
	Amortization or maturity date change	32		3,554		(1)	10		2,744		22
	Other	7		7,961		668	3		869		388
Total CRE - Multi family		50	$	12,803	$	640	26	$	10,214	$	202

CRE - Office:⁽³⁾

	Interest rate reduction	4	$	4,155	$	(236)	5	$	1,923	$	212
	Amortization or maturity date change	12		40,152		4,199	2		1,238		83
	Other	6		1,637		276	3		---		(408)
Total CRE - Office		22	$	45,944	$	4,239	10	$	3,161	$	(113)

CRE - Industrial and warehouse:⁽³⁾

	Interest rate reduction	3	$	7,470	$	(296)	1	$	2,165	$	(299)
	Amortization or maturity date change	16		34,613		(3,857)	7		19,448		(5,446)
	Other	1		1,047		(30)	1		2,147		(937)
Total CRE - Industrial and Warehouse		20	$	43,130	$	(4,183)	9	$	23,760	$	(6,682)

CRE - Other commercial real estate:⁽³⁾

	Interest rate reduction	10	$	2,944	$	(288)	18	$	18,620	$	(1,180)
	Amortization or maturity date change	48		80,672		4,090	64		106,532		(2,288)
	Other	6		10,030		(2,024)	5		8,199		19
Total CRE - Other commercial real estate		64	$	93,646	$	1,778	87	$	133,351	$	(3,449)

Automobile:⁽⁴⁾

	Interest rate reduction	40	$	368	$	4	38	$	554	$	4
	Amortization or maturity date change	1,910		13,186		(103)	2,010		17,221		(143)
	Chapter 7 bankruptcy	2,104		12,423		1,866	---		---		---
	Other	---		---		---	---		---		---
Total Automobile		4,054	$	25,977	$	1,767	2,048	$	17,775	$	(139)

Residential mortgage:⁽⁵⁾

	Interest rate reduction	25	$	8,795	$	(40)	10	$	12,637	$	(567)
	Amortization or maturity date change	482		65,336		1,394	655		91,979		1,988
	Chapter 7 bankruptcy	583		45,193		4,854	---		---		---
	Other	15		1,836		81	26		4,391		108
Total Residential mortgage		1,105	$	121,160	$	6,289	691	$	109,007	$	1,529

First-lien home equity:⁽⁶⁾

	Interest rate reduction	222	$	28,381	$	4,424	142	$	17,275	$	2,722
	Amortization or maturity date change	130		10,468		(49)	89		10,636		616
	Chapter 7 bankruptcy	188		8,317		4,244	---		---		---
	Other	---		---		---	---		---		---
Total First-lien home equity		540	$	47,166	$	8,619	231	$	27,911	$	3,338

Junior-lien home equity:⁽⁷⁾

	Interest rate reduction	60	$	3,023	$	494	127	$	6,521	$	430
	Amortization or maturity date change	390		15,040		(432)	117		4,096		39
	Chapter 7 bankruptcy	1,241		13,347		18,564	---		---		---
	Other	7		288		---	---		---		---
Total Junior-lien home equity		1,698	$	31,698	$	18,626	244	$	10,617	$	469

Other consumer:⁽⁸⁾

	Interest rate reduction	14	$	305	$	32	14	$	1,104	$	74
	Amortization or maturity date change	27		2,150		(111)	63		445		(21)
	Chapter 7 bankruptcy	14		198		---	---		---		---
	Other	---		---		---	---		---		---
Total Other consumer		55	$	2,653	$	(79)	77	$	1,549	$	53
Total new troubled debt restructurings		7,974	$	597,425	$	38,747	3,698	$	583,439	$	1,310

(1)	TDRs may include multiple concessions and the disclosure classifications are based on the primary concession provided to the borrower.
(2)	Amounts represent the financial impact via provision for loan and lease losses as a result of the modification.
(3)	Post-modification balances approximate pre-modification balances. The aggregate amount of charge-offs as a result of a restructuring are not significant.
(4)	Chapter 7 bankruptcy pre-modification balances were impacted by $1.3 million of net charge-offs in 2012.
(5)	Chapter 7 bankruptcy pre-modification balances were impacted by $7.9 million of net charge-offs in 2012.
(6)	Chapter 7 bankruptcy pre-modification balances were impacted by $3.9 million of net charge-offs in 2012.
(7)	Chapter 7 bankruptcy pre-modification balances were impacted by $21.5 million of net charge-offs in 2012.
(8)	Chapter 7 bankruptcy pre-modification balances were not significantly impacted by net charge-offs in 2012.

Any loan within any portfolio or class is considered as payment redefaulted at 90-days past due.

The following table presents TDRs that have redefaulted within one year of modification during the years ended December 31, 2012 and 2011:

		Troubled Debt Restructurings That Have Redefaulted
		Within One Year of Modification During The Year Ended
		December 31, 2012⁽¹⁾			December 31, 2011⁽¹⁾
(dollar amounts in thousands)		Number of	Ending		Number of	Ending
		Contracts	Balance		Contracts	Balance

C&I - Owner occupied:

	Interest rate reduction	4	$	1,390	13	$	6,173
	Amortization or maturity date change	13		2,380	10		5,201
	Other	---		---	2		2,352
Total C&I - Owner occupied		17	$	3,770	25	$	13,726

C&I - Other commercial and industrial:

	Interest rate reduction	3	$	401	1	$	98
	Amortization or maturity date change	14		609	12		10,140
	Other	3		387	---		---
Total C&I - Other commercial and industrial		20	$	1,397	13	$	10,238

CRE - Retail Properties:

	Interest rate reduction	---	$	---	---	$	---
	Amortization or maturity date change	3		372	---		---
	Other	---		---	---		---
Total CRE - Retail properties		3	$	372	---	$	---

CRE - Multi family:

	Interest rate reduction	2	$	1,236	4	$	1,102
	Amortization or maturity date change	2		343	2		456
	Other	---		---	---		---
Total CRE - Multi family		4	$	1,579	6	$	1,558

CRE - Office:

	Interest rate reduction	---	$	---	---	$	---
	Amortization or maturity date change	---		---	---		---
	Other	---		---	---		---
Total CRE - Office		---	$	---	---	$	---

CRE - Industrial and Warehouse:

	Interest rate reduction	---	$	---	---	$	---
	Amortization or maturity date change	1		413	8		3,665
	Other	---		---	---		---
Total CRE - Industrial and Warehouse		1	$	413	8	$	3,665

CRE - Other commercial real estate:

	Interest rate reduction	1	$	898	3	$	648
	Amortization or maturity date change	4		646	10		2,014
	Other	---		---	---		---
Total CRE - Other commercial real estate		5	$	1,544	13	$	2,662

Automobile:

	Interest rate reduction	4	$	---	1	$	---
	Amortization or maturity date change	132		69	198		---
	Chapter 7 bankruptcy	34		149	---		---
	Other	---		---	---		---
Total Automobile		170	$	218	199	$	---

Residential mortgage:

	Interest rate reduction	2	$	61	2	$	148
	Amortization or maturity date change	100		13,574	57		6,900
	Chapter 7 bankruptcy	30		4,085	---		---
	Other	7		804	4		531
Total Residential mortgage		139	$	18,524	63	$	7,579

First-lien home equity:

	Interest rate reduction	11	$	932	2	$	692
	Amortization or maturity date change	5		503	7		436
	Chapter 7 bankruptcy	2		124	---		---
	Other	---		---	---		---
Total First-lien home equity		18	$	1,559	9	$	1,128

Junior-lien home equity:

	Interest rate reduction	2	$	112	3	$	272
	Amortization or maturity date change	3		99	8		614
	Chapter 7 bankruptcy	7		30	---		---
	Other	---		---	---		---
Total Junior-lien home equity		12	$	241	11	$	886

Other consumer:

	Interest rate reduction	1	$	---	1	$	---
	Amortization or maturity date change	3		---	11		---
	Chapter 7 bankruptcy	---		---	---		---
	Other	---		---	---		---
Total Other consumer		4	$	---	12	$	---

Total troubled debt restructurings with subsequent redefault		393	$	29,617	359	$	41,442

(1)	Subsequent redefault is defined as a payment redefault within 12 months of the restructuring date. Payment redefault is defined as 90-days past due for any loan in any portfolio or class. Any loan in any portfolio may be considered to be in payment redefault prior to the guidelines noted above when collection of principal or interest is in doubt.

Pledged Loans and Leases

The Bank has access to the Federal Reserve's discount window and advances from the FHLB – Cincinnati. At December 31, 2012, these borrowings and advances are secured by $18.4 billion of loans.